Is Telematics Something You Can Market, or is it Just Built In?

Telem­at­ics is now expect­ed to be in cars by con­sumers (along with fleets and insur­ance com­pa­nies), but where is it com­ing from? What about after­mar­ket sales of telem­at­ics in this age of increas­ing OEM and in-phone telem­at­ics? Here are a few points to keep in mind:

• Frost & Sul­li­van expects a lot of growth in the mar­ket, and that after­mar­ket will con­tin­ue to play a big part of the game with appli­ca­tions such as stolen vehi­cle track­ing, insur­ance telem­at­ics, info­tain­ment, and road user charg­ing.
• The ris­ing use of vehi­cle telem­at­ics is a con­cern to many after­mar­ket man­u­fac­tur­ers based on their assump­tion that OEMs will use the tech­nol­o­gy to freeze after­mar­ket play­ers out of the mar­ket, accord­ing to Auto­mo­tive After­mar­ket Indus­try Asso­ci­a­tion (AAIA). The orga­ni­za­tion has launched the first-ever After­mar­ket Telem­at­ics Chal­lenge, which will rec­og­nize and hon­or the most inno­v­a­tive and com­mer­cial­ly viable exam­ple of vehi­cle con­nec­tiv­i­ty tech­nol­o­gy. Com­pa­nies are invit­ed to sub­mit their entries by Oct. 1.
• Late last month, a huge acqui­si­tion was com­plet­ed in the telem­at­ics and con­nect­ed car sphere with Ver­i­zon Com­mu­ni­ca­tions clos­ing the deal on pur­chas­ing Hugh­es Telem­at­ics Inc. HTI is a leader in all three parts of the mar­ket – after­mar­ket, fleet oper­a­tors, and OEMs, allow­ing Ver­i­zon to hedge its bets on the future of telem­at­ics.
The ques­tion for deal­ers becomes: What’s your best option? Deal­ers have lit­tle say on what telem­at­ics ser­vices automak­ers are installing and how they’re being pack­aged and pre­sent­ed, and smart phones are tak­ing away some of the con­sumer inter­est. So after­mar­ket is still a strong chan­nel for mar­ket­ing, but the spe­cif­ic mar­ket demands and tech­nol­o­gy solu­tions need deal­er research and expe­ri­ence.



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